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What is amount of net profit when merchandising cost = Rs. 21,650; expenses of doing business = Rs. 480 and sales = Rs. 24,900?
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What is amount of net profit when merchandising cost = Rs. 21,650; exp...
Calculation of Net Profit:
- Merchandising Cost = Rs. 21,650
- Expenses of doing business = Rs. 480
- Sales = Rs. 24,900

Step 1: Calculate Gross Profit
Gross Profit = Sales - Merchandising Cost
Gross Profit = Rs. 24,900 - Rs. 21,650
Gross Profit = Rs. 3,250

Step 2: Calculate Net Profit
Net Profit = Gross Profit - Expenses of doing business
Net Profit = Rs. 3,250 - Rs. 480
Net Profit = Rs. 2,770
Therefore, the amount of net profit after deducting the expenses of doing business from the gross profit is Rs. 2,770. This is the final profit that the business would have after accounting for all the expenses incurred in the process of generating sales.
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What is amount of net profit when merchandising cost = Rs. 21,650; exp...
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What is amount of net profit when merchandising cost = Rs. 21,650; expenses of doing business = Rs. 480 and sales = Rs. 24,900?
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